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Banco Santander to Buy Back 50% Stake in its Asset-Management Unit

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November 16, 2016

MADRID?Banco Santander SA has agreed to buy back the 50% stake in its asset-management unit that it sold to two private-equity firms in 2013.

Santander said the sale by Warburg Pincus LLC and General Atlantic would allow the bank to have full control of the asset manager's ?170 billion of assets under management. Santander had sold the stake to both firms 3¿ years ago in a transaction that valued the unit at ?2 billion.

Santander didn't disclose on Wednesday in a regulatory filing how much it would pay Warburg Pincus and GeneralAtlantic to take full ownership of the asset manager.

Santander said it expects a negative impact of around 11 basis points to its core Tier 1 capital ratio by the end of this year. Analysts have said Santander's buyback makes sense as the company steps up its focus on generating more fees.

The Wall Street Journal had reported that Santander was in talks to buy back a 50% stake in its asset-management unit on Nov. 2.

Write to Jeannette Neumann at jeannette.neumann@wsj.com and Simon Clark at simon.clark@wsj.com